Unceded Algonquin Anishinaabe Territories [OTTAWA], 13 March 2024:
With Canada’s federal budget just one month away, a new analysis from the Canadian Centre for Policy Alternatives (CCPA) and Climate Action Network Canada (CAN-Rac) finds that Canada still is not spending what it takes to respond to the climate crisis – but that effective, achievable solutions are at hand.
Federal climate spending will rise from 0.5 per cent of GDP today to 0.7 per cent over the next five years – still considerably below the 2 per cent target that experts believe is necessary to decarbonize the economy and compete in the global energy transition.
With cost-of-living and extreme weather events both on the rise, investing now in climate action is critical for long-term affordability.
CAN-Rac and CCPA highlight three practical steps that the federal government can take in Budget 2024 to address immediate affordability concerns and bring tangible benefits while cutting emissions:
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Expand the heat pump affordability program to lower energy bills, improve households’ quality of life, and cut emissions from buildings;
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Establish a youth climate corps to fill skills shortages while bridging youth into good green jobs; and
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Extend the windfall profits tax to the oil and gas sector, to ensure that polluters pay their fair share, as countries such as the UK have done, which could raise $4.2 billion or more.
All of these measures are popular: there is more interest in heat pumps than ever, while recent polls have found that 78 per cent of Canadians support or can accept a Youth Climate Corps, and that 62 per cent agree with a windfall tax on oil and gas companies’ record profits.
“These are win-win opportunities,” said Hadrian Mertins-Kirkwood, senior researcher at CCPA and author of the new analysis. “We can tackle climate change and the affordability crisis at the same time, but it will require political courage and ambitious spending.”
Alex Cool-Fergus, National Policy Manager at CAN-Rac, added: “As Canada braces for yet another catastrophic wildfire season, the federal government must use Budget 2024 to advance solutions that reduce emissions while improving affordability and well-being. Low-carbon, affordable solutions exist: it’s time for the federal government to invest in measures that make them readily available for everyday Canadians.”
Read more:
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CAN-Rac and CCPA’s 2023 report Spending What It Takes: Transformational climate investments for long-term prosperity in Canada
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Canada’s farthest-reaching network of organizations working on climate and energy issues, Climate Action Network – Réseau action climat (CAN-Rac) Canada is a coalition of 150 organizations operating from coast to coast to coast. Our membership brings environmental groups together with trade unions, First Nations, social justice, development, health and youth organizations, faith groups and local, grassroots initiatives.
For more information or to arrange an interview, contact:
Vicky Coo, Communications Manager
comms@climateactionnetwork.ca